Desire Petroleum

<>Desire Petroleum plc (Desire) is a UK company listed on the Alternative Investment Market (AIM) dedicated to exploring for oil and gas in the North Falkland Basin.

Desire has recently completed a 6 well exploration programme. The Liz well encountered dry gas and gas condensate at 2 separate levels while other wells recorded shows.
Together with the Rockhopper Exploration Sea Lion oil discovery in the licence to the north, these wells have provided significant encouragement for the potential of the North Falkland Basin. The oil at Sea Lion is of particular interest as this has demonstrated that oil is trapped in potentially significant quantities in a fan sandstone on the east flank of the basin. It is believed that over 50% of this east flank play fairway is on Desire operated acreage.

Desire has now completed new 3D seismic acquisition which provides coverage over the east flank play, Ann, Pam and Helen prospects. The results from fast-track processing of priority areas are provided in the 2011 CPR. A farm-out to Rockhopper has been announced. The revised equities are shown on the licence map (subject to regulatory approval and completion of the farm-in well). Desire Petroleum

Rockhopper Exploration

British Geological Survey

Argos Resources



Latest Press Realeses from Desire

I assume there is at least some truth to this story, if not nearly 100% accurate. Much will depend on tomorrow's RNS and the market reaction, I imagine 50p is on the cards, but this was and remains very speculative and the first drill isn't the be all and end all. I'll assess in the morning and decide whether to take my medicine or stick with it. Hope no one has got the town hall riding on this!

The well drilling isn't over so 50p seems incredibly harsh.....might not be as bad as it seems...another year's drilling ahead at least....on the pullback : there will be buyers...I won't be selling....in for the longterm...unless the rns is terrible which I doubt.

Just speculating RF, no-one knows what tomorrow morning will bring, many scenarios spring to mind, not least Liz is non-commercial, SP tanks, Beth proves a winner, SP rockets. Probably wishful thinking though :-)

They are still testing and you dont test dusters!!!

So what you make of the articale in the times markymar?

more importantly is that DES has seemingly promised a clarifying rns first thing tomorrow

For all the people whom still believe then tomorrow you will be able to buy very cheap if the shares are not suspended.

Opening price of 60/65p first thing and who knows where by the end.

I still hold a small amount after breaking even so I will just continue the rollercoaster ride (been a long 4 year ride) with no big deal if they go to the wall but a nice smile if they can extract oil at a profit. Wishing everyone that has faith in DES every success

Markymar,Whilst not having a position in DES i can understand to a limited degree the indignation felt by holders, like yourself, who have followed them for years, or those, who are left exposed with an overweight position ..lt would have been less painful for s/p had DES issued a drilling statement ( admitting current problems but inherrant with positive noises for the future ) before the Times article made it look a bit of a dog. But surely that is the nature of the beast .lts a cliche; but Risk v. Reward /Greed v Fear is the main plank of capitalism . Surely. We cant all start getting uppity when variables totally beyond our control seem to conspire to doom us. Lets not forget this well was never given a high chance of commercial success . lt was an exploratary well . l agree an RNS keeping s/holders abreast of events- a drilling statement - should have been released long before a "source" { albeit seemingly reliable }within the ranks of Murdochs empire dotted the "i" s and crossed the "T" s for DES. ,That was wrong ,,ln situations such as this i have found the mkt always initially exxagerates a retraction .ALWAYS ! ,,,,,,,,,,but i could see 60p breached temporarily but as they say even a dead dog bounces ...Des will move on . the next well spudded. new buyers appear doing a little bottom fishing and the game starts again ,,,,,

Not too long to go now and we shall all now the real truth and the reality of the situation.


For those long in DES they are probably hoping this was a short wave radio hack who spread malicious information designed to be heard knowing that it would get fed back. Perhaps it was designed as a shorts closing exercise as they know that DES have hit something good and with testing ongoing they do not have long to close their positions now.

For those short on DES they will be hoping the story is true and will attempt to incite mass panic to get the lowest price to close their shorts.

Me, not fussed either way as I shall not be selling my wee holding here, far too many more drills to come. However, I do not like the potential for malicious intent which is why I have reported this to the authorities. If the Times article was based on malicious information spread by someone trying to cause problems, then its going to make news, not for the content but for the embarrassment it will cause to all when referenced to in future.

Only a few hours to go now :) Exciting...... :)

Basically Prose. thats part of my very point...Long term -This is merely the start of what is a pretty intensive drilling programme scheduled for drilling a number of leads , so why would anyone sell now ? .lts like leaving the match after your team goes down by a goal after 10 minutes / l believe that each,and every time, a well is on the cusp of a result the s/p will rise to about the same levels as now anyway . But we live in an age of Jam today.So short term - lf news is to be believed the s/p will be adversely affected - the damage is done. Even shorters will find margins on premiums restrictive .With not having held stock for over 4 years and having not properly researched DES during that time i am left pondering what would be a good trading entry point ....gut instinct says 50/55p ..but something tells me it will bounce before that level...and as drilling continues it will slowly creep back up to current level,,,,,,,,,,,,,,,,,

FC - agreed.

The Times article is in fact quite clever to only mention LIZ and reference everything to LIZ whilst avoiding any mention of BETH.

Desire shareholders will know that BETH is the lower target and would be drilled into if LIZ fails to hold large charges of oil (we might find LIZ contains gas).

So the Times writer has perhaps deliberately avoided mentioning BETH so as to attempt to write "failure" all over the 1st drill, even though we all know that BETH would be drilled into if LIZ fails, as the company stated that it expected either LIZ or BETH to hold oil, but not both of them. He can hide behind only LIZ being the 1st target and avoid mention of BETH.

So from a technical standpoint, the writer could claim that LIZ (and not BETH) was the 1st drill/target and therefore his "flop" claim is correct, even if they are now drilling down into BETH (as he only mentions LIZ being a flop).

A bit crude and perhaps the mention of stock price falls later in the article gives the game away as to the desired effect of this kind of reporting and ignoring of the details and the lower BETH prospect.

I would laugh if this is the case, and all that has happened is that they are now drilling into BETH as LIZ contains gas or not enough oil.

BETH is a bit smaller than LIZ but still could be very large upside.

Stop speculating and wait for the RNS........ tells to self ;)

For immediate release 29 March 2010

Desire Petroleum plc

("Desire" or "the Company")

Drilling Update


Due to recent press speculation, Desire Petroleum wishes to announce that the Liz 14/19-1 well, in the North Falkland Basin, has reached a depth of 3570 metres and logging is underway.

The primary Liz target was encountered at around 2550 metres with indications of hydrocarbons while drilling. Subsequent logging operations have shown that oil may be present in thin intervals but that reservoir quality is poor. Wireline sampling is still to be carried out. Deeper gas shows have also been encountered while drilling, particularly below 3400 metres and these have still to be evaluated by wireline logging and sampling.

Until the logging is complete and the results analysed it will not be possible to determine the significance of the hydrocarbons encountered and whether the well will need to be drilled deeper, suspended for testing or plugged and abandoned.

Operations are expected to be completed later this week when a full announcement will be made.
For further information please contact:

Desire Petroleum plc

020 7436 0423

Stephen Phipps, Chairman



Dr Ian Duncan, Chief Executive Officer







Seymour Pierce Limited

020 7107 8000

Jonathan Wright



Christopher Wren







Buchanan Communications

020 7466 5000

Tim Thompson


Chris McMahon


Is this good or bad? and if bad how bad? anyone any ideas on SP at 0800?

Not too great for this well, but they are still evaluating and drilling possibly sounds like there may be better gas than oil if anything commercially.

As far as other prospects, the chances are increased as this well proves working petroleum systems do exist in the South Falklands basin.

So, this news is pretty good overall.

Rose tinted specs poo...

No because I don't hold but I can read.

Just like all football supporters there are those who do and those who don't and won't under any circumstances view anything positive about a team they decide to dislike or just be jealous of.

Before we know it there will be violence on the streets as rival supporters meet and decide to settle their differences in the usual primeval fashion.

As said they are still testing and you dont test dusters.....

Actually Mark, they do!

For testing when they have other prospects to drill in the same geological environment.